THE NEGOTIATION ON

IMPORT - EXPORT
CONTRACT
GROUP 1
I. CONCEPT OF IMPORT-EXPORT
CONTRACTS
 I. CONCEPT OF IMPORT - EXPORT CONTRACTS

1.1 Definition
The Import-Export Contract is an essential
document for both the seller (exporter) and the
buyer (importer), demonstrating the
agreements between the two parties
regarding the purchase and sale of goods.
Particularly, import-export contracts often
involve two parties based in different
countries, with goods needing to be
transported between these countries.
Therefore, the contract terms must be
extremely precise.
 I. CONCEPT OF IMPORT - EXPORT CONTRACTS

1.1 Definition

In short, an import-export contract,

like any regular contract, is an
agreement between parties to
establish, amend, or terminate rights
and obligations in specific social
relations.
I. CONCEPT OF IMPORT - EXPORT CONTRACTS
 I. CONCEPT OF IMPORT - EXPORT CONTRACTS

1.2. Role of Import-Export Contracts:

This is how trust is built It serves as a tool to address It is a legal framework that
among parties engaged in matters related to the process of helps identify and protect
long-distance trade buying and selling, exchanging the rights and obligations
transactions, overcoming goods, and helps parties plan their of parties involved in
geographical distances transactions as accurately and international trade
and various other issues. comprehensively as possible. exchanges.
 I. CONCEPT OF IMPORT - EXPORT CONTRACTS

1.2. Role of Import-Export Contracts:

It serves as a tool for It provides the basis for the state and
commercial arbitrators and competent authorities to assess and
competent authorities to control the activities of parties to
determine the rights and enforce tax laws and take measures to
obligations of parties in case of prevent and eliminate activities that
disputes. violate the law.
 I. CONCEPT OF IMPORT - EXPORT CONTRACTS

The import-export contract clearly defines the rights and

obligations of both parties involved, help to prevent conflicts
and understand the responsibilities each party must fulfill.

1.3. Purpose of
Import-Export The contract specifies the value of the transaction, the
Contracts: payment method, and the payment terms.

It outlines the time and conditions of delivery, including the

expected delivery date, the port of departure, the destination
port, as well as the terms of transportation and cargo
insurance.
 I. CONCEPT OF IMPORT - EXPORT CONTRACTS

The contract may specify conditions related to product

warranties and return rights in case of defects or quality issues.

1.3. Purpose of
Import-Export It helps determine the responsibilities and costs related to
Contracts: customs procedures, export duties, and other legal issues.

The contract may contain provisions for dispute resolution,

including arbitration or legal recourse.
 I. CONCEPT OF IMPORT - EXPORT CONTRACTS

1.4 Introduction to our Import-Export project

PROJECT: Negotiating about export of UHT Fresh Milk products from Vinamilk to Changsha Yiyiyuan
Dairy Co.Ltd

EXPORTER IMPORTER
Vietnam Dairy Products Joint Stock Changsha Yiyiyuan Dairy Co.Ltd
Company (Vinamilk)
CEO: Jesses
CEO: Nhung
Business Manager: Quỳnh
Secretary: Hương
Administrative Assistant: Kim
 I. CONCEPT OF IMPORT - EXPORT CONTRACTS

1.4 Introduction to our Import-Export project

The basic objective of both party:

Establish a mutually beneficial agreement that ensures the successful export of UHT Fresh Milk
products.
Define clear terms and conditions that govern the export process, including quality standards,
quantity, pricing, and delivery schedules.
Foster a long-term partnership built on trust, reliability, and efficiency in trade relations.
Maximize profitability for both parties while maintaining competitive pricing in the market.
Ensure the consistency of product quality and adherence to food safety regulations throughout
the export process.
Explore opportunities for future collaboration and expansion into new markets to further grow
both company’s businesses.
II. PRE-NEGOTIATION
 2.1 IMPORTER
2.1.1 Exchanging Information/ First offer
Importer sent an email to Vinamilk company to inquiry UHT Milk Products information
From: changshayiyuan@gmail.com.cn
To: vinamilk@vinamilk.com.vn
Subject: Inquiry about Vinamilk UHT Fresh Milk Products

Dear Sir or Madam

We are writing this letter to express interest in Vinamilk UHT Fresh Milk products and explore the
possibility of collaborating with Changsha Yiyiyuan Dairy Co. Ltd to import and distribute these
products in our market, this is China.

Having conducted research, we have noted the high trust and esteem that Vinamilk UHT Fresh Milk
products enjoy among consumers. With the aim of providing high-quality products to our market, we
are keen to gather more detailed information about Vinamilk's UHT Fresh Milk range.
We would like to inquire about product details and express our interest in negotiating with your
esteemed company regarding the importation of this product.

Your sincerely,
Jesses
Ceo of Changsha Yiyiyuan Dairy Company
 2.1 IMPORTER

2.1.2 Set your objectives (SMART)

Entering into a potential UHT Fresh milk purchase contract with the exporting company, focusing on long-term
partnership and cooperation.
S: Specific Agreeing to purchase UHT Fresh milk in the range of 3500 PCs, with an estimated contract value of 1,382,500 CNY.
Negotiations commence on April 1st, 2024, and conclude by April 30th, 2024. Contract signing must be completed
before May 2024 under CIF Incoterms.

Establishing a stable supplier relationship with the exporting company for at least 2 years, spanning from 2024 to
2026.
Specifying the quantity of UHT Fresh milk to be purchased within the contract, ranging from 3500 PCs, with each unit
M: Measurable price between 340 - 355 CNY/PC (FOB Cat Lai port); 385 - 395 CNY/PC (CIF Shanghai port).
Aim to finalize clauses 1 to 5 of the contract from April 1st to April 15th, 2024, with the remaining sections resolved by
April 30th, 2024.
 2.1 IMPORTER

2.1.2 Set your objectives (SMART)

Employ effective negotiation strategies to secure favorable terms within the contract.
A: Attainable Determine a reasonable pricing structure aligned with market standards and within the mutually beneficial zone
of possible agreement (ZOPA) for both parties.

Facilitate access to quality UHT Fresh milk products for local consumers, contributing to the company's growth
and profitability.
R: Relevant Expanding market reach into the Chinese market, tapping into its potential for business expansion.
Cultivating long-term partnerships with reliable suppliers, fostering sustainable business relationships and
ensuring a stable supply chain.

Goals need to start from the moment the contract is signed.

T: Time-bound This goal needs to be achieved in 2 years.
 2.1 IMPORTER

2.1.3 Seek our precedence

With long-term experience and reputation on the China domestic market, Changsha Yiyiyuan Daisy
Company invariably has a desire to bring the best products to our customers. Therefore, we often go
towards the competitor price as well as the standard quality of the products that are provided by our
partner. In addition, this is the very first time we have made a contract with a new partner named
Vietnam Dairy Products Joint Stock Company (Vinamilk) so our priority is the commodity’s price. In other
words, we focus on financial goals first though we also pay attention to the quality of products as well as
other essential factors.
About the unit price of the products will be: 340 - 355 CNY/PC (FOB Cat Lai port); 385 - 395 CNY/PC
(CIF Shanghai port).
About payment method: we hope to pay a 50% advance payment of the total value of the goods to
the seller. Within 7 days after receiving the goods, we will settle the remaining 50% of the contract
value.
 2.1 IMPORTER

2.1.3 Seek our precedence

Predict partner’s goals:

Expand the products on other

foreign markets to obtain more
development opportunities.
Develop a long-term collaborative
relationship.
Want to provide products with
reasonable prices.
 2.1 IMPORTER

2.1.4 Set your limits

2.1.4.1 Batna

Batna → 340 - 355 CNY/PC (FOB Cat Lai port); 385 - 395 CNY/PC (CIF Shanghai port).

+ Product price: The price should be at 340 - 355 CNY/PC (FOB Cat Lai port); 385 - 395
CNY/PC (CIF Shanghai port).

+ The minimum price YiYi Yuan can accept is 340 CNY at FOB and 385 at CIF. It will not be
accepted if it is less than this price. Yiyi Yuan aims for a product price of 395 CNY/PC at CIF and
355 CNY/PC. The lower the price, the better.

+ Delivery:
- Time of delivery acceptable for exporter: 5-10 days after signing contract date
 2.1 IMPORTER

2.1.4 Set your limits

2.1.4.2 What if

What if Our response would be

PRICE

Let's search and analyze the reasons for price increases with the
exporter.
The exporter requests a price increment for UHT Fresh milk products
Explain that we purchased it in large quantities.
due to market competition pressure?
And state that we will cooperate long-term if the exporting party
agrees to reduce the price.

To address significant fluctuations in exchange rates or raw material

Significant fluctuations in exchange rates or raw material costs affect
costs affecting milk product pricing, hedging strategies, such as
the pricing of milk products? How can we navigate through these
forward contracts or price stabilization agreements, can be utilized to
challenges to ensure stable pricing?
mitigate risks. (or can use Forward contract)
 2.1 IMPORTER

2.1.4 Set your limits

2.1.4.2 What if

What if Our response would be

Delivery Terms

The exporter wants to request a change in delivery terms from CIF Just carefully consider and calculate the FOB price, and determine
(Cost, Insurance, Freight) to FOB (Free On Board)? how much it would be to provide them with an answer.

Propose to them to switch to another direction; otherwise, we would

The exporter wants to use other Incoterms excluding FOB and CIF. have to decline the collaboration as it doesn't align with the initially
set objectives.
 2.1 IMPORTER

2.1.4 Set your limits

2.1.4.2 What if

What if Our response would be

Payment Conditions

Propose that they could negotiate to switch to T/T (Telegraphic

The exporter suggests to use L/C payment Transfer) with 30% upfront and 70% after signing the contract for 15
days.

Propose that they could negotiate to switch to T/T (Telegraphic

The export does not agree to T/T (Telegraphic Transfer) with 30%
Transfer) with 50% upfront and 50% after signing the contract for 15
upfront and 70% after signing the contract for 15 days
days.
 2.1 IMPORTER

2.1.4 Set your limits

2.1.4.2 What if

What if Our response would be

Relationship

Invite them to visit the distribution system and organize an event to

Exporter doesn’t believe our company
demonstrate the collaboration between both parties.
 2.1 IMPORTER

2.1.5 Collect information

A. About the company
Official Name: VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY (VINAMILK).

Field of operation: Dairy and dairy product manufacturing.

Consolidated revenue: 60,075 billion Vietnamese dong.

Dairy cow farming: Vinamilk has developed a system of professional dairy cow farms, compliant
with international standards and Vietnamese law regulations. Currently, there are 5 operational
dairy cow farms and 4 farms under construction.

Raw material production: Vinamilk supplies fresh dairy cow milk for milk processing factories.

Charter capital: Vinamilk's charter capital has reached 1,550 billion Vietnamese dong.
 2.1 IMPORTER

2.1.5 Collect information

B. Vinamilk’s Strategy

Becoming One of the 30 Largest Dairy Companies in the World: Vinamilk aims to become one
of the 30 largest dairy companies in the world in terms of revenue.

Leading in Highly Applicable Innovations: Vinamilk focuses on the dairy industry and related
products, developing new products with innovation and diversifying the portfolio based on
consumer preferences and needs
C. Product of Vinamilk (relevant to UHT Fresh Milk)

Vinamilk 100% UHT Fresh Milk:

Vinamilk 100% Fresh Milk is produced from high-quality fresh ingredients that meet high-
quality standards. It is available in various packaging options: 1L carton, 180ml, and 110ml.
 2.1 IMPORTER
2.1.5 Collect information
C. Product of Vinamilk (relevant to UHT Fresh Milk)

Nutritional information per 100ml:

Energy: 68.9 kcal
Fat: 3.3 g
Protein: 3.0 g
Carbohydrate: 6.8 g
Calcium: 110 mg
Phosphorus: 90 mg
Selenium: 7.6 µg
Vitamin A: 250 IU
Vitamin D3: 165 IU
Vinamilk Green Farm UHT Milk:

Vinamilk Green Farm UHT Milk is high-quality fresh milk sourced from modern Vinamilk Green Farm farms in
Vietnam. The Green Farm farms are located in the provinces of Tay Ninh (South), Quang Ngai (Central), and
Thanh Hoa (North).

Vinamilk Green Farm is priced higher than regular UHT milk but remains affordable compared to organic milk.
 2.1 IMPORTER
2.1.5 Collect information
D. Competitors (relevant to UHT Fresh Milk)

Vinamilk is confronting intense competition from rivals in the dairy industry, particularly within the UHT
Fresh Milk segment. Here are some of Vinamilk's competitors:

TH true Milk: The dairy brand under TH Group has experienced remarkable revenue growth. From 2017 to
2020, TH true Milk's revenue surged by nearly 49%, reaching 5.5 trillion Vietnamese dong.

VPMilk: Another formidable competitor, VPMilk, has also witnessed a fivefold revenue increase, reaching
150 billion Vietnamese dong during the same period.

Ale Milk Company: A rising player in the dairy industry, Ale Milk Company, is actively challenging Vinamilk
and other competitors.
 2.1 IMPORTER
2.2.5 Collect information

POLITICAL LEGICAL

PESTLE OF VIETNAM
ECONOMICAL TECHNOLOGICAL

SOCIAL ENVIRONMENT
 2.1 IMPORTER
2.1.5 Collect information
PESTLE OF VIETNAM

Political:
Vietnam's political stability provides favorable conditions for Vinamilk's business growth.
The government supports businesses through policies on tax, credit, and workforce training, reducing
costs for Vinamilk and enhancing its competitiveness.

Economic:
Stable economic growth and rising average income increase the demand for milk consumption,
potentially boosting Vinamilk's production and sales.
Stable milk prices and controlled inflation create favorable conditions for planning production and
pricing for businesses.
 2.1 IMPORTER
2.1.5 Collect information
PESTLE OF VIETNAM

Social:
Vietnam's population is growing rapidly, especially with a large number of young people, indicating a
potential market for milk and related products.
The growing trends in health and vegetarianism create opportunities for Vinamilk to expand its plant-
based milk products to meet diverse market demands.

Technological:
Modern technology applied in farming, production, and processing enhances productivity and product
quality for Vinamilk.
Investment in technology helps Vinamilk improve production efficiency and reduce costs, thereby
increasing competitiveness in the market.
 2.1 IMPORTER
2.1.5 Collect information
PESTLE OF VIETNAM

Environmental:
Vietnam's geography and climate may affect dairy farming, but advanced technologies can minimize
risks and enhance production efficiency.
Investment in technology and proper farming practices can help Vinamilk ensure a stable and quality
milk supply.
Legal:
Regulations on food quality and safety ensure that Vinamilk's milk meets export market standards and
requirements.
Tax and customs policies may affect Vinamilk's pricing and profits from export and import activities
 2.1 IMPORTER
2.1.6 Building relationship

We are going to conduct a list of positive behaviors

to establish the relationship with our Vietnamese
partner:
Invite Vietnamese partners to our distribution
markets to illustrate a general business
background for them. For example, we can
invite them to examine some reputation
supermarket systems like Hema which is a
"hypermarket" chain of Alibaba Group and is
expanding its retail network in Hunan and
Hubei provinces, China.

=> This is an opportunity for our partner to

understand more about our market as well as this
is a chance for us to express our goodwill. Source: Supply chain movement
 2.1 IMPORTER
2.1.6 Building relationship

Familiar with China, Viet Nam is also a country that

has a high-context culture, thus we have several
similarities about social view as well as business
conception. Therefore, we don’t need to make a
big effort on finding out the difference of business
culture between 2 countries. Besides, we can
prepare a special present which is related to
China’s culture for our partner like a well-known
kind of tea named Longjing tea.

=> To demonstrate that we prepared all aspects

carefully for the negotiation.

Source: Amazon.com
 2.1 IMPORTER
2.1.6 Building relationship
Propose our partner to sign a cooperation
agreement for long-term mutual development. This
is truly necessary to perform a formal signing
ceremony when we are toward a long-term
relationship.

=> Conducting a cooperation agreement for long-

term mutual development not only shows our
serious attitude with the collaboration, but also
demonstrates our profession.
 2.2 EXPORTER
2.2.1 Exchanging Information/ First offer
From: vinamilk@vinamilk.com.vn
To: changshayiyuan@gmail.com.cn
Subject: Reply to the enquiry about Vinamilk UHT Fresh Milk Products

Dear Sir or Madam

We are very honored to receive email inquiries from your company about our UHT Fresh Milk products.
We are writing this email to respond to the issues your company mentioned. Hopefully this email will be a bridge between us to successful
cooperation in the future.

Regarding product quality, as you have learned about our company, our company is an experienced and reputable company in the field of
manufacturing dairy products in Vietnam and that is why your company can completely trust the quality of products that our company brings. For
more details about the quality and characteristics of the product, you can refer to the file we attached to this email.

Regarding the number of products we can provide, our company is very confident in its ability to produce large quantities to meet your
company's needs.

Regarding price, we are committed to offering preferential prices for your company because we hope to have long-term cooperation with your
company. Prices will also be adjusted to suit the quantity of goods you order. Our company hopes to have negotiations to discuss this issue
further and will sign a contract if both parties satisfy their needs.

The negotiation period we expect will take place this April. We hope that your company will give us feedback on the specific time the negotiation
can take place.

Best regards,
Tuyet Nhung
CEO of Vinamilk
 2.2 EXPORTER

2.2.2 Set your objectives (SMART)

Signing the potential UHT Fresh milk sale contract, potential Chinese customers and strengthening
partnerships and cooperation with Chinese partners in the long-term.
We require the partner company to purchase UHT Fresh milk in the quantity of 120,400 kg, the contract
S: Specific value is about 138,000,000 CNY.
The negotiation should be started 1st April 2024 and finished before 30th April 2024. The order is delivered
under CIF terms according to Incoterms and the contract should be signed before May 2024.

Maintain relationships with Chinese partners and become a long-term supplier with them for at least 2
years, from 2024 to 2026.
The quantity of goods agreed upon in the contract should be 3500 PCs and the value of each barrel is from
M: Measurable 345-360 CNY/PC (FOB Cat Lai port), 390-410 CNY/PC (CIF Shanghai port)
From 1st April, 2024 to 15th April, 2024, we should complete and agree on clauses 1,2,3,4,5. The remaining
parts will be negotiated and agreed upon from 15th April, 2024 to before 1st May, 2024.
 2.2 EXPORTER

2.2.2 Set your objectives (SMART)

Use masterful negotiation techniques to get the contract signed with the best objectives.
A: Attainable Determine the reasonable price of goods in accordance with market standards and within the buyer's ZOPA
zone.

Help our company get big projects and achieve high profits.
R: Relevant Approach to the potential Chinese market.
Increase the number of potential customers and long-term cooperation relationships.

The negotiation should be started 1st April 2024 and finished before 1st May 2024.-
T: Time-bound Goals need to start from the moment the contract is signed.-
The contract should be signed before 15th May 2024.
 2.2 EXPORTER
2.2.3 Our Precedence

We expect that the unit price of the products

will be: 345-360 CNY/PC (FOB Cat Lai port),
390-410 CNY/PC (CIF Shanghai port)

About delivery term, we hope to apply:

CIF Incoterms 2020

Priorities for UHT Fresh Milk storage

conditions: Must meet milk storage
conditions, shipping container hygiene
quality, and milk storage temperature.
 2.2 EXPORTER
2.2.3. Our Precedence

Predict partner’s goals:

Want to sign a contract
Reasonable price consistent with
product quality
Looking for more market expansion
opportunities
Long-term cooperation
 2.2 EXPORTER
2.2.4 Set your limits

2.2.4.1 Batna

Batna → 345-360 CNY/PC (FOB Cat Lai port), 390-410 CNY/PC (CIF Shanghai port).

+ Product price: The price should be at 345-360 CNY/PC (FOB Cat Lai port), 390-410
CNY/PC (CIF Shanghai port). The higher the price, the better.

+ Quantity: VNM wishes to sell the largest quantity of products possible. If the quantity
is too small, the profit will be insignificant.

+ Delivery:
Time of Delivery: 7 days after signing the contract date.

+ Payment Conditions: VNM wishes to export with L/C at sight payment method. The
lowest form of payment that VNM can accept T/T in advance is 50%.
 2.2 EXPORTER
2.2.4 Set your limits
2.2.4.2 What if

What if Our response would be

PRICE

Check your BATNA again. Don't agree right away with the importer's
The importer does not agree with the standard contract and wants a
first request. Offer a slight price reduction from the initial price, but
further reduction in price.
stay within your BATNA.

Explain and provide evidence to them about the increase in raw

What if an increase in raw material or transportation costs leads to a
material prices and demonstrate that the price hike is a widespread
price hike for milk products, and the importer does not accept the
market trend, not just specific to them. Offer some other incentives
new price?
and promise to lower the price for them as a favor for the next time.
 2.2 EXPORTER
2.2.4 Set your limits
2.2.4.2 What if

What if Our response would be

Delivery Terms

The importer wants to request a change in delivery terms from CIF Just carefully consider and calculate the FOB price, and determine
(Cost, Insurance, Freight) to FOB (Free On Board)? how much it would be to provide them with an answer.

Propose to them to switch to another direction; otherwise, we would

The importer wants to use other Incoterms excluding FOB and CIF. have to decline the collaboration as it doesn't align with the initially
set objectives.
 2.2 EXPORTER
2.2.4 Set your limits
2.2.4.2 What if

What if Our response would be

Payment Conditions

Carefully consider the formality they present and adjust accordingly

The importer suggest to use another payment term instead of L/C because this is the first time cooperating, so it's crucial not to be
overly trusting and to offer a safe plan for yourself.

Do not agree and elevate to a more appropriate level and set a

The importer want to use to T/T (Telegraphic Transfer) with 30%
minimum of T/T 50% upfront and 70% after signing the contracts for
upfront and 70% after signing the contracts for 15 days
15 days
 2.2 EXPORTER
2.2.4 Set your limits
2.2.4.2 What if

What if Our response would be

Relationship

Invite them to visit the milk factory and dairy farm. Simultaneously,
Importer doesn’t believe our company demonstrate the quality standards we have achieved as well as our
position in the global market.
 2.2 EXPORTER
2.2.5 Collect information
Changsha Yiyiyuan Dairy Co.Ltd

About the company:

Changsha Yiyiyuan Dairy Co.Ltd, located on the bank of the Huaihe River, was

COMPANY
founded in 2008. As a well-known local brand in Anhui, it has grown up with
generations of Anhui people.
Changsha Yiyiyuan has won many awards such as "Anhui Province Famous
Trademark", "National Agricultural Products Processing Demonstration Unit",
and "China Green Food Certification". It is the only enterprise in Anhui Province
with the qualification to produce infant formula milk powder.
Changsha Yiyiyuan has its own pure natural plain pasture, more than 80 brands
of pasteurized milk, room temperature milk, baby powder, adult powder, etc.,
and a total of 12 international standard dairy production lines. Changsha
Yiyiyuan has gone through more than 60 years, and has always provided safe,
nutritious and fresh products, wholeheartedly meeting the health needs of
different consumers, benefiting every day and staying healthy every year.
 2.2 EXPORTER
2.2.5 Collect information
Changsha Yiyiyuan Dairy Co.Ltd

In 2008, Changsha Yiyiyuan Dairy Co.Ltd was founded, introduce the

Ultra High Temperature (UHT) technology and UHT liquid milk
production line on a massive scale

COMPANY In 2012, Changsha Yiyiyuan’s main business income reached 1.3 billion
yuan.

In 2016, a series of new products were represented by Satine Organic

Milk, SHUHUA. In the same year, Changsha Yiyiyuan established a
dairy research database of Chinese enterprises with reliability and
accuracy.

In 2020, Changsha Yiyiyuan Dairy released a new brand logo and a

strategy for future development and new propositions "Nourishing
Life" which meant that the most valuable dairy brand in all of China
had been completely upgraded.
 2.2 EXPORTER
2.2.5 Collect information
Changsha Yiyiyuan Dairy Co.Ltd

In 2022 Yiyiyuan made further breakthroughs in its globalization

strategy. The project of the annual production of 13,000 tons of

COMPANY
Yiyiyuan pure milk production line invested in New Zealand was
approved. In July of the same year, the enterprise transformed
technological innovation, and promoted the transformation of
China's dairy industry from "Made in China" to "Intelligently Made
in China".

In 2023,Changsha Yiyiyuan Dairy Co.Ltd achieved a total

operating revenue of 446.95 billion yuan, becoming an Asian
dairy enterprise to surpass 400 billion yuan.
 2.2 EXPORTER
2.2.5 Collect information

PRODUCT
Cereal fruit flavored UHT Fresh Milk
The golden oatmeal grains are plump, elastic and smooth, and paired with fruit
pieces, it’s a great meal replacement tool for replenishing hunger and energy.
Bottled fresh milk
The exclusive ranch is close to you, the pasteurization process is more nutritious,
and the raw milk formula is more fragrant.
 2.2 EXPORTER
2.2.5 Collect information

PRODUCT
Pasture fresh milk
100% raw milk source, 3.3g/100ml, high-quality milk protein.
Pure way of beauty and health
100% pure milk formula
Changsha Yiyiyuan pure milk
100% pure milk formula, from the Ministry of Agriculture demonstration farm,
using ultra-high temperature instant sterilization process
 2.2 EXPORTER
2.2.5 Collect information

COMPETITORS

Bright Food (Group) Co. Ltd

China Mengniu Dairy Company Limited
Inner Mongolia Yili Industrial Group Co. Ltd
Nestlé SA
Want Want Holdings Limited
 2.2 EXPORTER
2.2.5 Collect information

Market share of leading dairy product companies in China as of 2021

 2.2 EXPORTER
2.2.5 Collect information

POLITICAL LEGICAL

PESTLE OF CHINA
ECONOMICAL TECHNOLOGICAL

SOCIAL ENVIRONMENT
 2.2 EXPORTER
2.2.5 Collect information

POLITICAL ECONOMICAL SOCIAL

More than 70 years After more than 30 years It has a massive

since the establishment of reform and opening up, population of which
of diplomatic relations (in China has achieved a almost 90% of them are
1951), Vietnam-China continuously high literate. Therefore, the
relations have had ups economic growth rate (9- business can get expert
and downs, but 10%/year), becoming the laborers and employees
friendship and second largest economy at a lower cost. The high
cooperation are the main in the world since 1999. population is one of the
current. 2010. reasons for low labor
costs.
 2.2 EXPORTER
2.2.5 Collect information

TECHNOLOGICAL LEGAL ENVIRONMENT

Business and technology China also has some Though ecology does
are intricately related. restrictions on the not majorly affect the
Technical innovations investment of foreign growth of a country, it
affect the capacity of companies. It may may have some indirect
production, resulting in a decrease the number of impact. China has
surge in business international companies experienced rapid
revenue investing in the market of growth in the last few
the country. decades, and as a result,
there is urbanization.
 2.2 EXPORTER
2.2.6 Building relationship

Write emails to build relationships and express your desire for long-term and serious cooperation.

Giving gifts is a highly valued tradition in Chinese culture. In business, partner gifts demonstrate
the strength and potential of the gift giver. At the same time, show respect for the gift recipient.
Therefore, choosing a gift for your Chinese partner should definitely not be done lightly. Besides,
Chinese businessmen are extremely fond of feng shui, they believe and work according to feng
shui. Therefore, feng shui gifts are also extremely popular with them. We will give the CEO of the
Chinese company a gold-plated Pi Xiu statue in a box.

Sincerely invite the Chinese CEO to visit Vinamilk's farm and advanced manufacturing factory in
Binh Duong.
III. STRATEGIES AND TACTICS
 3.1 Importer predict to use in the negotiation

Verbal and Nonverbal Negotiation Tactics

Promise:
The importer can promise to ensure full and timely payment for milk orders, thereby
building trust and stability with suppliers.
Promise special discounts for the next cooperation

Recommendation
A proposal is a suggestion for resolving an issue during negotiations. It's used to seek
agreement from all parties involved. Effective proposals should be backed by reasons and
specific evidence.
 3.1 Importer predict to use in the negotiation

Verbal and Nonverbal Negotiation Tactics

Reward
"Giving a greeting gift."
In negotiations regarding expanding a partnership, one party may promise to provide
special incentives or discounts to the partner if they agree to sign the agreement.

Normative Appeal:
The importer can persuade by presenting standards on food safety and product quality
to request the supplier to adhere to these standards.
 3.1 Importer predict to use in the negotiation

Negotiation Tactics, Continued

Commitment:
Implementation: The importer can commit to purchasing a specific volume of
Vinamilk milk over a defined period if the products is really excellent.

Question:
Implementation: The importer can inquire about Vinamilk's production
process, product quality, or export policies.
 3.1 Importer predict to use in the negotiation

Negotiation Tactics, Continued

No:
Implementation: The importer can refuse terms that are not suitable or do
not meet their requirements.
Example: "We cannot accept this proposed price as it exceeds our budget."

Interrupting:
Implementation: The importer can interrupt to quickly voice opinions or
address issues before continuing negotiations.
Example: "Sorry for the interruption, but can we discuss this a bit further? I'd
like to understand more about your delivery terms."
 3.1 Exporter predict to use in the negotiation

Verbal 1 Imporand Nonverbal Negotiation Tactics

Promise:
The milk exporter can promise to ensure consistent and high-quality supply of
Vinamilk products to the importer, thereby fostering trust and stability in the
partnership.
Offer special discounts for future cooperation to incentivize the importer to continue
the partnership.

Recommendation:
Provide a proposal backed by reasons and evidence for expanding the partnership.
This could include market analysis showing the potential benefits of increased
collaboration or testimonials from satisfied customers.
 3.1 Exporter predict to use in the negotiation

Verbal 1 Imporand Nonverbal Negotiation Tactics

Reward:
Give the gift for the first time meeting
Offer a greeting gift or special reward as a token of appreciation if the importer
agrees to expand the partnership with Vinamilk. This gesture can help strengthen the
relationship between the two parties.

Normative Appeal:
Persuade the importer to adhere to food safety and product quality standards by
highlighting Vinamilk's commitment to these standards. Provide evidence of
Vinamilk's certifications and quality control measures to assure the importer of the
product's integrity.
 3.1 Exporter predict to use in the negotiation

Negotiation Tactics, Continued

Commitment and Implementation:

Commit to supplying Vinamilk milk in a specific quantity over a defined period if the
importer commits to full and timely payment.
Implement the commitment by providing stability in Vinamilk milk supply, ensuring
product quality consistently meets requirements and satisfies the importer's needs.

Refusal:
State refusal of terms that are unsuitable or fail to meet the importer's requirements.
Example: "We cannot accept the proposed price as it exceeds our budget."

Question:
Inquire about Vinamilk's production process, product quality, or export policies to
ensure they meet the importer's standards and requirements.
 3.1 Exporter predict to use in the negotiation

Negotiation Tactics, Continued

Recommendation:
Propose providing special incentives or discounts in future collaborations if the importer
agrees to sign a long-term contract with Vinamilk.

Reward:
Commit to providing a greeting gift or a special reward if the importer agrees to expand the
partnership with Vinamilk.

Normative Appeal:
Utilize standards on food safety and product quality to persuade the importer to adhere to
these standards, thereby enhancing trust and stability in the partnership.
COMMODITY
 UHT MILK PRODUCTS

Vinamilk
100%
Organic
 UHT MILK PRODUCTS

Achieved Clean Label Project Certification

Vinamilk The first European standard Organic farm

100%
in Vietnam.
Purebred Organic cattle breed.
Organic Natural Organic grassland.
100% Organic food source.
Environmentally friendly green farm.
 UHT MILK PRODUCTS

Vinamilk
Green
Farm
 UHT MILK PRODUCTS

Breakthrough dual milk vacuum

Vinamilk technology

Green Conquered 3 prestigious international

awards
Farm
10-year carbon neutral journey
 UHT MILK PRODUCTS

Vinamilk
Green
Farm
CONTRACT
THANK FOR LISTENING